1.

Report to class what assistance is given by the local government to the small and medium scale
industries.
2. List down 5 agripreneurs in your community and present in class the kinds of business they are
engaged in. find also the reason for engaging in business.
3. Read RA 9178 (from DTI website, www.dti.gov.ph )
a. What is the main objective of the law?
b. Mention three incentives for the law. Explain.

https://www.shopify.com/ph/blog/5-government-programs-for-msmes-in-the-philippines

https://lawphil.net/statutes/repacts/ra2002/ra_9178_2002.html

Activity #3

Small and Medium Enterprise Roving Academy (SMERA)

DTI has the Small and Medium Enterprise Roving Academy (SMERA), a continuous learning
program for the development of MSMEs in the Philippines. SMERA is a partnership and
mentorship with the DTI, where business owners participating in the program get paired with a
counselor and an expert who advise them on training and business development services they
may need.

Pondo sa Pagbabago at Pag-Asenso (P3)

One big problem for new MSME entrepreneurs is quick access to capital, but the government
solves this with the Pondo sa Pagbabago at Pag-Asenso (P3) program.
Getting start-up capital is usually a hurdle for entrepreneurs as banks often won't lend to them
because they're new business owners, leading to fears that their loans won't be paid. P3 gets
around this by encouraging and incentivizing other alternative sources of loans and funding for
entrepreneurs, such as microfinance institutions (MFIs).
Under P3, MSME owners can borrow anywhere from P5,000 up to P200,000 – enough to get
them started on a small business – from the DTI with a low-interest rate of 2.5% per month. On
top of this, P3 also provides business owners with extra financial knowledge for their own
benefit.

Barangay Micro Business Enterprise

Recognizing that microbusinesses keep a lot of communities thriving, especially in remote and
suburban areas, the government signed the Barangay Micro Business Enterprise (BMBE) Law
in 2002. The benefits under this law help out microentrepreneurs in the Philippines by giving
them incentives to help run their small businesses.

When entrepreneurs register as a BMBE, they get to enjoy several benefits. They are granted
the following:

1. Exemption of coverage from the minimum wage law

2. Income tax exemption
 3. Social security and healthcare benefits
4. Priority for a special credit window

Assistance programs and training

Officially registering as a BMBE reduces the amount of taxes, fees, and charges you’ll need to
deal with at the start of setting up a business.

Your business can qualify as a BMBE if it meets the following criteria:

1. It's under production, processing, manufacturing, trading, and services.

2. Total assets of less than P3 million (excluding the value of the land).
3. You are not a duly licensed professional (with regard to the products or services your
business provides).
4. It is not a branch or franchise of a large-scale enterprise.

Go Lokal!

DTI can also help you there with their Go Lokal! Government program, which brings locally
made products to Go Lokal! partner stores and retail establishments all over the Philippines,
such as Ayala Malls, Rustan’s, Duty-Free, Robinsons Malls, and a lot more.
The access that Go Lokal! can give is best for MSMEs with unique products looking for a
broader market, especially those made from regional and local traditions.

The main objective And Incentives of RA 9178

To provide livelihoods for Filipinos and improve the quality of life. As such, the BMBE provides
the following incentives: Income tax exemption from income arising from the operations of the
business. Any business entity or enterprise engaged in the production, processing or
manufacturing of products or commodities, including agro-processing, trading and services,
whose total assets including those arising from loans but exclusive of the land on which the
particular business entity’s office, plant and equipment

Income tax exemption from income arising from the operations of the business

Minimum wage law exemption (note that BMBE employees will still receive the same SSS and Philhealth
benefits)

Access to a special credit window which was established for the financing of BMBEs

Access to tech transfer, production and management training, and marketing assistance programs

LGUs may also offer reduction OR exemption of local taxes, fees, and other charges